Zephyr Cove business owner sentenced in fraud case | TahoeDailyTribune.com

Zephyr Cove business owner sentenced in fraud case

Karen R. Chapon
Courtesy / Douglas County Sheriff’s Office

A Zephyr Cove business owner was sentenced Tuesday for fraudulently obtaining about $200,000 from insurance companies and loan institutions, according to a press release from Nevada Attorney General Adam Paul Laxalt.

Karen Rae Chapon, 47, was sentenced for insurance fraud, a category D felony; mortgage fraud, a category C felony; and theft, a category B felony. Chapon owns Tahoe Weddings and Events at Zephyr Cove, according to the press release.

Chapon pleaded guilty on Aug. 15, 2016, to defrauding an insurance company by submitting travel insurance claims using two separate forged death certificates and fraudulent invoices. Chapon also provided forged and fraudulent bankruptcy documentation to a local mortgage broker and out of state title insurance company in order to secure a loan of $180,000.

As a result of these fraudulent activities, Chapon received nearly $200,000 from insurance companies and loan institutions.

“Those considering making false claims and committing other acts of fraud should be aware that their actions will have serious consequences,” Laxalt said in the press release. “Insurance and mortgage fraud schemes not only hurt provider companies but the public at large by needlessly driving up insurance costs, and my office will continue to investigate and prosecute complex fraud schemes like this one.”

Ninth Judicial District Court Judge Thomas Gregory sentenced Chapon to 72 months incarceration with parole eligibility in 24 months.

Through bankruptcy proceedings, $185,000 of the funds obtained through Chapon’s mortgage fraud scheme were reimbursed. Chapon was ordered to pay the remaining $13,000 to her insurance fraud victims.

Support Local Journalism

Support Local Journalism

Readers around the Lake Tahoe Basin and beyond make the Tahoe Tribune's work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.